Comments on: Dell Has "Excess Inventories?" http://www.leanblog.org/2005/11/dell-has-excess-inventories/ Mark Graban's leanblog.org - Lean Healthcare, Lean Thinking, Lean Manufacturing, Toyota Production System Thu, 09 Feb 2012 22:59:58 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: "Favorite Posts" Q4 2005 — Lean Blog http://www.leanblog.org/2005/11/dell-has-excess-inventories/#comment-22766 "Favorite Posts" Q4 2005 — Lean Blog Thu, 28 Jul 2011 00:40:21 +0000 http://leanblog.bigbigdesign.net/2005/11/dell-has-excess-inventories/#comment-22766 [...] Dell Has Excess Inventories? [...] [...] Dell Has Excess Inventories? [...]

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]]> By: Chet Frame http://www.leanblog.org/2005/11/dell-has-excess-inventories/#comment-150 Chet Frame Tue, 01 Nov 2005 15:40:00 +0000 http://leanblog.bigbigdesign.net/2005/11/dell-has-excess-inventories/#comment-150 It seems to me that this is the continuing hammer impact of Wall Street on a manufacturing company. The complaint is that the earnings per share will only be $.31. These are the same people who advised Toyota to give more profit to their shareholders and invest less in developing new technologies.<br/><br/>There was an interesting article on NPR this morning (go to http://www.npr.org/templates/story/story.php?storyId=4984222)about the shift in investing and the role of fund managers. It would take one year of corporations saying that they were not going to give out quarterly reports to make a fairly large improvement in the decision making. It seems to me that this is the continuing hammer impact of Wall Street on a manufacturing company. The complaint is that the earnings per share will only be $.31. These are the same people who advised Toyota to give more profit to their shareholders and invest less in developing new technologies.

There was an interesting article on NPR this morning (go to http://www.npr.org/templates/story/story.php?storyId=4984222)about the shift in investing and the role of fund managers. It would take one year of corporations saying that they were not going to give out quarterly reports to make a fairly large improvement in the decision making.

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]]> By: Mark Graban http://www.leanblog.org/2005/11/dell-has-excess-inventories/#comment-149 Mark Graban Tue, 01 Nov 2005 14:08:00 +0000 http://leanblog.bigbigdesign.net/2005/11/dell-has-excess-inventories/#comment-149 Also, the Dell spokesman claims, in the Business Week article, that it's a "relatively small number" of defective PC's that need the motherboard replaced. <br/><br/>$300 MILLION is the charge they are taking for this repair.<br/><br/>Assuming $50 for a motherboard and $100 for the repair labor, that's 2 MILLION computers.<br/><br/>Even a ridiculously expensive repair, at $1000 each, that's 300,000 PC's.<br/><br/>Ouch. The cost of poor quality was high, indeed. Also, the Dell spokesman claims, in the Business Week article, that it’s a “relatively small number” of defective PC’s that need the motherboard replaced.

$300 MILLION is the charge they are taking for this repair.

Assuming $50 for a motherboard and $100 for the repair labor, that’s 2 MILLION computers.

Even a ridiculously expensive repair, at $1000 each, that’s 300,000 PC’s.

Ouch. The cost of poor quality was high, indeed.

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]]> By: Mark Graban http://www.leanblog.org/2005/11/dell-has-excess-inventories/#comment-148 Mark Graban Tue, 01 Nov 2005 13:55:00 +0000 http://leanblog.bigbigdesign.net/2005/11/dell-has-excess-inventories/#comment-148 Regarding the quality problems, the Dell spokesman said:<br/><br/>"There's no safety risk associated with it and no data loss associated with it," he said. "The (affected) systems just won't power up."<br/><br/>Oh, that's OK (as a customer). They "just won't power up". That's no big deal, is it??? ;-) Regarding the quality problems, the Dell spokesman said:

“There’s no safety risk associated with it and no data loss associated with it,” he said. “The (affected) systems just won’t power up.”

Oh, that’s OK (as a customer). They “just won’t power up”. That’s no big deal, is it??? ;-)

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